Schroders and Lloyds announced on Wednesday that the business will be known as Schroders Personal Wealth. It will be available to affluent customers of Lloyds Bank Private Banking and Bank of Scotland Private Banking from June, and to the wider UK market from the fourth quarter.
Name resonated with advisers and consumers
Lloyds owns 50.1% of the share capital, while Schroders owns the remaining 49.9%, yet Schroders has been given the brand despite the slightly lower shareholding.
A spokesperson for Schroders said: “We undertook the usual independent research with advisers and consumers on a number of options and the end result is the one which resonated the strongest for the business model.”
As part of the deal, Lloyds will transfer £13bn to the joint venture and will receive a 20% stake in Schroders’ wealth management business Cazenove Capital.
The joint venture will be supported by Benchmark Capital, a technology-led adviser business Schroders bought in 2016.
Investors will be required to have £100,000 minimum investible assets to become customers.
Schroders Personal Wealth chief executive designate James Rainbow (pictured) said: “The UK wealth management market is growing, and pension freedoms mean that the responsibility is shifting to the individual. This means more people than ever need help as they plan for their futures. We can play a role in helping address the need for financial planning with a clear and transparent service.
“The backing of the country’s largest banking group and the number one investment brand gives us access to resources and expertise that will help us serve our customers better and make their money work harder for them.”
Lloyds’ ambitious plans
Commenting in Lloyds’ 2018 results, also published on Wednesday, group CEO António Horta Osório said the aim was for Schroders Personal Wealth to become a top three UK financial planning business within the next half decade.
He said: “Our Schroders partnership announced in October is a key part of our strategy to accelerate growth in wealth by leveraging our multi-channel customer reach and Schroders’ investment expertise, with the aim of becoming a top three UK financial planning business within five years.”
Last week it was revealed that the JV aims to employ 700 advisers and increase assets under management from £13bn to £25bn. Industry commentators said the target is expected to leave independent financial advisers “rattled”.